Halliburton (HAL) Stock Forecast & Price Target

Halliburton, recognized as North America's largest oilfield-services company, maintains a robust position in the hydraulic fracturing and completions market, which constitutes nearly half of its revenue. The company is expected to capitalize on several catalysts, including improved margins, increased exploration and production spending driven by higher commodity prices, and enhanced competition dynamics that could lead to better pricing and profitability. Additionally, Halliburton's projections for generating $1.8 billion in free cash flow by 2026, along with anticipated revenue growth rates of 2% to 6% for the following years, underscore its strong financial outlook and capacity for shareholder returns.

Halliburton's revenue guidance for 4Q25 indicates a decline of approximately 2% quarter-over-quarter at the mid-point, with adjusted EBITDA expected to decrease by 5% to 11%, primarily due to reduced margins in the completions and drilling sectors. Additionally, projected declines in both North American and international revenue, along with rising corporate expenses and negative impacts from tariffs, reflect significant challenges in the company's operational environment. Finally, the expectation of low-double-digit declines in North American revenue for FY25, driven by pricing softness and planned schedule gaps, further exacerbates the company's negative financial outlook.